2019 EEI Financial Conference 2019 EEI Financial Conference - - PowerPoint PPT Presentation

2019 EEI Financial Conference 2019 EEI Financial Conference

November 2019

Patrick J. Goodman

Executive Vice President and Chief Financial Officer

Forward-Looking Statements

2

This presentation contains statements that do not directly or exclusively relate to historical facts. These statements are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements can typically be identified by the use of forward-looking words, such as "will," "may," "could," "project," "believe," "anticipate," "expect," "estimate," "continue," "intend," "potential," "plan," "forecast" and similar terms. These statements are based upon Berkshire Hathaway Energy Company (BHE) and its subsidiaries, PacifiCorp and its subsidiaries, MidAmerican Funding, LLC and its subsidiaries, MidAmerican Energy Company, Nevada Power Company and its subsidiaries or Sierra Pacific Power Company and its subsidiaries (collectively, the Registrants), as applicable, current intentions, assumptions, expectations and beliefs and are subject to risks, uncertainties and other important factors. Many of these factors are outside the control of each Registrant and could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors include, among others: – general economic, political and business conditions, as well as changes in, and compliance with, laws and regulations, including income tax reform, initiatives regarding deregulation and restructuring of the utility industry, and reliability and safety standards, affecting the respective Registrant's operations or related industries; – changes in, and compliance with, environmental laws, regulations, decisions and policies that could, among other items, increase operating and capital costs, reduce facility output, accelerate facility retirements or delay facility construction or acquisition; – the outcome of regulatory rate reviews and other proceedings conducted by regulatory agencies or other governmental and legal bodies and the respective Registrant's ability to recover costs through rates in a timely manner; – changes in economic, industry, competition or weather conditions, as well as demographic trends, new technologies and various conservation, energy efficiency and private generation measures and programs, that could affect customer growth and usage, electricity and natural gas supply

• r the respective Registrant's ability to obtain long-term contracts with customers and suppliers;

– performance, availability and ongoing operation of the respective Registrant's facilities, including facilities not operated by the Registrants, due to the impacts of market conditions, outages and repairs, transmission constraints, weather, including wind, solar and hydroelectric conditions, and

• perating conditions;

– the effects of catastrophic and other unforeseen events, which may be caused by factors beyond the control of each respective Registrant or by a breakdown or failure of the Registrants' operating assets, including severe storms, floods, fires, earthquakes, explosions, landslides, an electromagnetic pulse, mining incidents, litigation, wars, terrorism, embargoes, and cyber security attacks, data security breaches, disruptions, or

• ther malicious acts;

– a high degree of variance between actual and forecasted load or generation that could impact a Registrant's hedging strategy and the cost of balancing its generation resources with its retail load obligations; – changes in prices, availability and demand for wholesale electricity, coal, natural gas, other fuel sources and fuel transportation that could have a significant impact on generating capacity and energy costs; – the financial condition and creditworthiness of the respective Registrant's significant customers and suppliers; – changes in business strategy or development plans; – availability, terms and deployment of capital, including reductions in demand for investment-grade commercial paper, debt securities and other sources of debt financing and volatility in interest rates; – changes in the respective Registrant's credit ratings; – risks relating to nuclear generation, including unique operational, closure and decommissioning risks;

Forward-Looking Statements

3

– hydroelectric conditions and the cost, feasibility and eventual outcome of hydroelectric relicensing proceedings; – the impact of certain contracts used to mitigate or manage volume, price and interest rate risk, including increased collateral requirements, and changes in commodity prices, interest rates and other conditions that affect the fair value of certain contracts; – the impact of inflation on costs and the ability of the respective Registrants to recover such costs in regulated rates; – fluctuations in foreign currency exchange rates, primarily the British pound and the Canadian dollar; – increases in employee healthcare costs; – the impact of investment performance and changes in interest rates, legislation, healthcare cost trends, mortality and morbidity on pension and

• ther postretirement benefits expense and funding requirements;

– changes in the residential real estate brokerage, mortgage and franchising industries and regulations that could affect brokerage, mortgage and franchising transactions; – the ability to successfully integrate future acquired operations into a Registrant's business; – unanticipated construction delays, changes in costs, receipt of required permits and authorizations, ability to fund capital projects and other factors that could affect future facilities and infrastructure additions; – the availability and price of natural gas in applicable geographic regions and demand for natural gas supply; – the impact of new accounting guidance or changes in current accounting estimates and assumptions on the consolidated financial results of the respective Registrants; and –

• ther business or investment considerations that may be disclosed from time to time in the Registrants' filings with the United States Securities and

Exchange Commission (SEC) or in other publicly disseminated written documents. Further details of the potential risks and uncertainties affecting the Registrants are described in the Registrants’ filings with the SEC. Each Registrant undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The foregoing factors should not be construed as exclusive. This presentation includes certain non-Generally Accepted Accounting Principles (GAAP) financial measures as defined by the SEC’s Regulation G. Refer to the BHE Appendix in this presentation for a reconciliation of those non-GAAP financial measures to the most directly comparable GAAP measures.

Berkshire Hathaway Energy

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Vision

To be the best energy company in serving our customers, while delivering sustainable energy solutions

Culture

Personal responsibility to our customers

Strategy

Reinvest in our businesses

• Continue to invest in our employees and
• perations, maintenance and capital

programs for property, plant and equipment

• Position our regulated businesses to meet

changing customer expectations and retain customers (reduce bypass risk) by providing excellent service and competitive rates

• Reduce the carbon footprint of our operations

by participating in energy policy development, resulting in the transformation of our businesses and assets

• Advance grid resilience, cybersecurity and

physical security programs

Invest in internal growth

• Pursue the development of a value-enhancing

energy grid and gas pipeline infrastructure

• Create customer solutions through innovative

rate design and redesign

• Grow our portfolio of renewable energy
• Develop strong grid systems, including

cybersecurity and physical resilience programs

Acquire companies

• Additive to business model

Competitive Advantage

Berkshire Hathaway ownership

Organizational Structure

5 A3/A-

Aa2/AA

90%

Nevada Power Company A2/A+(2) Regulated Electric Utility Sierra Pacific Power Sierra Pacific Power Company A2/A+(2) Regulated Electric and Gas Utility Real Estate Brokerage, Mortgage and Franchises Northern Powergrid (Northeast) Ltd. A3/A U.K. Regulated Electric Distribution Regulated Electric Transmission Contracted Contracted Non-utility Power Generation Northern Powergrid (Yorkshire) plc A3/A U.K. Regulated Electric Distribution Regulated Natural Gas Transmission A2/A Regulated Natural Gas Transmission Baa1/A- Holding Company Aa2/A+(2)) Regulated Electric and Gas Utility Baa2/A- Holding Company A1/A+(2) Regulated Electric Utility A/A(2) S&P / DBRS Alberta Canada Regulated Transmission

(1) Warren Buffett’s 2018 Berkshire Hathaway Shareholder Letter states – “The components of that figure are $24.8 billion in operating earnings, a $3.0 billion non-cash loss from an impairment of intangible assets (arising almost entirely from our equity interest in Kraft Heinz), $2.8 billion in realized capital gains from the sale of investment securities and a $20.6 billion loss from a reduction in the amount of unrealized capital gains” (2) Ratings for PacifiCorp, MidAmerican Energy, Nevada Power, Sierra Pacific Power and AltaLink L.P. are senior secured ratings

2018 Berkshire Hathaway Inc. ($ billions) Revenue $ 247.8 Net Income(1) $ 4.0 Equity $ 348.7 2018 Berkshire Hathaway Energy ($ billions) Revenue $ 19.8 Net Income $ 2.6 Equity $ 29.6

Significant Scale

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DISTRIBUTION Our integrated utilities serve approximately 4.9 million U.S. customers; Northern Powergrid has 3.9 million end-users in northern England, making it the third-largest distribution company in Great Britain TRANSMISSION We own significant transmission infrastructure in 15 states and the province of Alberta; with our assets at PacifiCorp, NV Energy and AltaLink, we are the largest transmission owner in the Western Interconnection PIPELINES BHE Pipeline Group transported approximately 8% of the total natural gas consumed in the U.S. during 2018 GENERATION As of September 30, 2019, we own 33,865 MW of power capacity in operation and under construction, with resource diversity and a growing renewable portfolio RENEWABLES As of September 30, 2019, we had invested $28 billion in solar, wind, geothermal and biomass generation, and have commitments to spend an additional $6 billion on wind generation by 2022

Comparable Companies

($ billions)

9/30/19 Market Cap(1) LTM 6/30/19

• Adj. Net Income(2)

6/30/19 Retained Earnings(2) NextEra Energy, Inc. $111.6 $3.9 $24.6 Duke Energy Corp. $69.8 $3.5 $3.5 Dominion Energy, Inc. $66.6 $2.8 $7.1 Southern Company $64.6 $3.0 $10.4 Exelon Corp. $46.9 $2.8 $15.5

Berkshire Hathaway Energy as of and for the LTM September 30, 2019 Retained Earnings: $27.8 billion

• Adj. Net Income(3): $3.0 billion

Berkshire Hathaway Energy’s regulated energy businesses serve customers and end-users across 18 U.S. states in the West and Midwest, and in Great Britain and Canada

(1) As reported by S&P Capital IQ (2) As reported by company public filings (3) See appendix for a detailed reconciliation of net income adjustments

Energy Assets

7

(1) Includes both electric and natural gas customers and end-users worldwide. Additionally, AltaLink serves approximately 85% of the population in Alberta, Canada (2) Net MW owned in operation and under construction as of September 30, 2019

As of and for the LTM ended 9/30/19 Assets $98 billion Revenues $19.9 billion Customers(1) 8.8 million Employees 22,700 Transmission Line 33,600 Miles Natural Gas Pipeline 16,400 Miles Power Capacity 33,865 MW(2) Renewables 42% Natural Gas 31% Coal 26% Nuclear and Other 1%

• Diversified portfolio of regulated assets

– Weather, customer, regulatory, generation, economic and catastrophic risk diversification

• Berkshire Hathaway ownership

– Access to capital from Berkshire Hathaway allows us to take advantage

• f market opportunities

– Berkshire Hathaway is a long-term holder of assets which promotes stability and helps make Berkshire Hathaway Energy the buyer of choice in many circumstances – Tax appetite of Berkshire Hathaway has allowed us to receive significant cash tax benefits from our parent, including $534 million in the nine months ended September 30, 2019, and $884 million in 2018

• No dividend requirement

– Cash flow is retained within the business and used to help fund growth and strengthen our balance sheet

Competitive Advantage

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• Berkshire Hathaway Energy and its subsidiaries will spend approximately $19.3 billion from

2019 – 2021 for growth and operating capital expenditures, which primarily consist of new wind generation project expansions, repowering of existing wind facilities, and transmission and distribution capital expenditures

Free Cash Flow

$- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 2014A 2015A 2016A 2017A 2018A 2019F 2020F 2021F

($ millions)

BHE Cash Flow from Operations BHE Total Capital Expenditures BHE Operating Capital Expenditures

Capital Expenditures and Cash Flows

9

2019 – 2021: $12 Billion Free Cash Flow above Operating Capex 2019 – 2021: $2 Billion Free Cash Flow above Total Capex

+

Regulatory Overview Adjustment Mechanisms

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Fuel Recovery Mechanism Capital Recovery Mechanism Renewable Rider (REC/PTC/ZEC) Transmission Rider Energy Efficiency Rider Decoupling Forward Test Year PacifiCorp Utah

    

(1)

Wyoming

   

(1)

Idaho

  

Oregon

    

Washington

    

California

    

MidAmerican Energy Iowa – Electric

    

Illinois – Electric

    

South Dakota – Electric

   

Iowa – Gas

   

Illinois – Gas

  

South Dakota - Gas

 

NV Energy Nevada Power

  

Sierra Pacific Power – Electric

  

Sierra Pacific Power – Gas

 

(1) PacifiCorp has relied on both historical test periods with known and measurable adjustments, as well as forecast test periods

11

Revenue and Net Income Diversification

• Diversified revenue sources reduce regulatory concentrations
• For the last 12 months ended September 30, 2019, 83% of adjusted net income was from investment-

grade regulated subsidiaries. A significant portion of the remaining non-regulated adjusted net income is from contracted generation assets at BHE Renewables

BHE LTM 9/30/19 Energy Revenue(1): $16 Billion

PacifiCorp 25% MidAmerican Funding 20% NV Energy 10% BHE Pipeline Group 13% BHE Renewables 12% Northern Powergrid 8% BHE Transmission 7% HomeServices 5%

BHE LTM 9/30/19 Adjusted Net Income(2): $3 Billion

Nevada 19% Iowa 18% Utah 15% Oregon 8% Wyoming 6% California 4% Illinois 4% Washington 2% Idaho 2% FERC 7% United Kingdom 6% Alberta 5% Other 4%

(1) Excludes HomeServices and equity income, which add further diversification (2) Percentages exclude BHE and Other. See appendix for a detailed reconciliation of net income adjustments

Net Income

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(1) See appendix for a detailed reconciliation of net income adjustments

($ millions) LTM Years Ended Net Income Attributable to BHE 9/30/2019 12/31/2018 12/31/2017 PacifiCorp 762 739 $ 763 $ MidAmerican Funding 606 669 601 NV Energy 322 317 365 Northern Powergrid 251 239 251 BHE Pipeline Group 396 387 270 BHE Transmission 218 210 224 BHE Renewables 360 329 236 HomeServices 168 145 118 BHE and Other (88) (218) (211) Adjusted Net Income attributable to BHE(1) 2,995 2,817 2,617 Unrealized Loss on BYD, net of Income Taxes (359) (383)

• Debt Tender Offer Premium
• (263)

2017 Tax Reform Benefits 89 134 516 Net Income attributable to BHE 2,725 $ 2,568 $ 2,870 $

• Since being acquired by Berkshire Hathaway in March 2000, Berkshire Hathaway Energy

has realized significant growth in its assets, equity, net income and cash flows

$6.5 $62.5 $65.9 $68.6 $71.3 $0 $15 $30 $45 $60 $75 2001 2016 2017 2018 9/30/19 $ billions $0.1 $2.5 $2.6 $2.8 $3.0 $0.0 $0.7 $1.4 $2.1 $2.8 $3.5 2001 2016 2017 2018 LTM 9/30/19 $ billions $0.8 $6.1 $6.1 $6.8 $6.4 $0.0 $2.0 $4.0 $6.0 $8.0 2001 2016 2017 2018 LTM 9/30/19 $ billions $1.7 $24.3 $28.2 $29.6 $31.6 $0 $7 $14 $21 $28 $35 2001 2016 2017 2018 9/30/19 $ billions

Net Income Attributable to BHE(1) BHE Shareholders’ Equity Property, Plant and Equipment (Net) Cash Flows From Operations

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Berkshire Hathaway Energy Financial Summary

(1) Starting in 2017, net income reflects adjusted net income. See appendix for detailed reconciliation

$- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $- $20 $40 $60 $80 $100 $120 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 LTM Sept. 2019 Net Income and Cash Flows From Operations ($ millions) Total Assets & Total Debt ($ billions) Total Assets Total Debt Net Income Cash Flows From Operations

Long-Term Perspective Growing the Business

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12/31/01 – 9/30/19 CAGR Total Assets 12% Net Income 19% Cash Flows From Operations 12%

• We have significantly grown our assets while de-risking the business since being acquired by Berkshire Hathaway in

2000, reducing total debt(1) / total assets from 58% to 42% and improving our credit ratings

(1) Total Debt excludes junior subordinated debentures and Berkshire Hathaway Energy trust preferred securities. As of September 30, 2019,

$100 million of junior subordinated debentures remained outstanding

(2) Starting in 2017, net income reflects adjusted net income. See appendix for detailed reconciliation

(2)

• In addition to owned renewable capacity, Berkshire Hathaway Energy’s regulated utilities have renewable energy power

purchase agreements for more than 4,100 MW. By the end of 2020, NV Energy plans to enter contracts to purchase approximately 2,500 MW of additional solar energy and PacifiCorp expects to have entered into contracts to purchase approximately 1,000 MW of additional wind and solar energy

Supporting a Cleaner Energy Future $34.1 Billion Renewable Investments

$17.7 $21.2 $6.6 $6.6 $0.9 $0.9 $3.0 $5.4

$28.2 $34.1

Q3 2019A 2022E

Remaining capital to be deployed

• $3.5 billion – Wind development and repowering
• $2.4 billion – Wind tax equity funding

Wind Solar Geothermal and Other Wind Tax Equity ($ billions)

15

Net Owned Operating Capacity (MW) September 2019 December 2022 Wind Solar Other Wind Solar Other PacifiCorp 1,039

• 32

2,229

• 32

MidAmerican Energy 5,352

• 6,803
• NV Energy
• 15

5

• 15

5 BHE Renewables 1,665 1,536 346 1,665 1,536 346 8,056 1,551 383 10,697 1,551 383

Advancing a Sustainable Energy Future

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• Berkshire Hathaway Energy is a leader in renewable energy. As of September 30, 2019, approximately

43% of our businesses’ owned generation capacity (operating and under construction) comes from non-carbon resources – Through September 30, 2019, Berkshire Hathaway Energy has spent $28.2 billion on renewable energy, and has made commitments to spend an additional $6 billion on wind generation by 2022 – The America Wind Energy Association’s 2019 Annual Market Report listed Berkshire Hathaway Energy as the largest investor-owned utility of regulated operating wind-power capacity – As we advance sustainable energy solutions, we are helping our customers achieve their sustainability goals and reduce environmental impact through increasing the amount of renewable energy we generate, empowering customers to conserve and manage their energy use, and partnering with them on unique projects

• One example of these efforts is an innovative partnership at a newly constructed all-electric,

net-zero residential multi-family community that will be partially powered by 5 megawatts of

• n-site solar panels with battery storage located in each of the 600 apartments, totaling

12.6 megawatt-hours of energy storage that is controlled by Rocky Mountain Power for the benefit of the community and the broader grid as a real-time dispatchable distributed energy solution – MidAmerican Energy is the largest owner in the U.S. of rate-regulated wind capacity, with 6,803 MW in operation or under construction. In 2018, MidAmerican Energy generated wind energy equivalent to approximately 51% of its Iowa customers’ annual retail electric usage. Once Wind XI, Wind XII, and the Wind XII expansion are completed (expected late 2020) adding up to 2,796 MW of wind generation, MidAmerican Energy is expected to meet 100% of its Iowa and South Dakota customers’ energy use on an annual basis with renewable, zero-carbon energy, becoming the first major utility in the U.S. to do so for its customers

Advancing a Sustainable Energy Future

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• PacifiCorp’s Energy Vision 2020 program will repower 1,039 MW of existing company-owned wind

facilities, acquire 950 MW of new wind projects, add 200 MW of wind procured through a power purchase agreement and build a new 140-mile, 500 kV transmission line. The projects are on schedule to be placed in service by year-end 2020 to deliver benefits to customers and improve transmission transfer capacity and reliability. In October 2019, PacifiCorp filed its Integrated Resource Plan, which includes the addition of more than 4,600 MW of new wind generation, 6,300 MW of new solar generation, 2,800 MW of battery storage, and nearly 4,500 MW of coal plant retirements through 2038

• As part of its Integrated Resource Plan filed in 2019 and as amended, NV Energy announced plans to

enter into power purchase agreements to procure generation from nearly 2,200 MW of solar generation and almost 700 MW of battery storage by 2024. Beyond 2024, the resource plan includes nearly 2,000 MW of additional solar generation and 100 MW of geothermal generation through 2038 which is consistent with Nevada’s energy policy to increase the amount of renewable energy. Nevada Power is retiring its last coal unit by year end 2019

• Owned coal-fueled capacity has declined as a percentage of Berkshire Hathaway Energy’s power

capacity portfolio from 58% in 2006 to 26% as of September 30, 2019. Since 2013, Berkshire Hathaway Energy has retired or has plans to retire approximately 6,400 MW (61% reduction) of coal generation capacity by 2038

• Berkshire Hathaway Energy’s natural gas transmission pipelines’ operational practices and methane

leak detection programs are designed to minimize the release of methane emissions. These leading practices resulted in the gas transmission pipelines’ combined leak rates, measured as a percentage of throughput, of 0.05% in 2018, which is significantly less than the industry average and goal of the ONE Future Initiative of 1%

• Additional information regarding our sustainability and environmental outlook can be found at

www.brkenergyco.com/environment

Decarbonization of the Balance Sheet

84% 7% 9%

Renewables, T&D and Other Natural Gas Generation Coal Generation

Net PP&E as of December 31, 2018 Berkshire Hathaway Energy 87% 1% 12% PacifiCorp MidAmerican Energy 70% 9% 21% 65% 34% 1% Nevada Power 79% 16% 5% Sierra Pacific

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• Berkshire Hathaway Energy is growing its renewable energy portfolio and continues to de-risk its balance sheet as it

relates to carbon-based generation assets. As of December 31, 2018, only 9% of our overall net investment in property, plant and equipment was invested in coal generation assets, while 7% was invested in natural gas generation assets

Power Diversification

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(1) All or some of the renewable energy attributes associated with generation from these generating facilities may be: (a) used in future years to comply with renewable portfolio standards or other regulatory requirements, or (b) sold to third parties in the form of renewable energy credits or other environmental commodities

9/30/2019 BHE Power Capacity – 33,865 MW

Total Renewables 42%

Coal 26% Natural Gas 31% Nuclear and Other 1% Wind 32% Solar 5% Hydro 4% Geothermal 1% Coal 58% Natural Gas 23% Nuclear and Other 3% Wind 5% Hydro 8% Geothermal 3%

Total Renewables 16%

2006 BHE Power Capacity – 16,386 MW LTM 9/30/2019 BHE Power Generation – 123 TWh

Total Renewables(1) 27%

Coal 43% Natural Gas 27% Nuclear and Other 3% Wind 19% Solar 3% Hydro 3% Geothermal 2%

Total Renewables(1) 12%

Coal 74% Natural Gas 9% Nuclear and Other 5% Wind 2% Hydro 5% Geothermal 5%

2006 BHE Power Generation – 83 TWh

• In 2006, Berkshire Hathaway Energy acquired PacifiCorp, and since this acquisition we have

significantly changed our generation mix by growing our renewable portfolio of assets

Low Cost Competitive Rates

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(1) Source: Edison Electric Institute (Summer 2019)

Highest Average Rates ($/kWh) by State(1): Hawaii – $0.2974; Massachusetts – $0.2098; Connecticut – $0.2029; Rhode Island – $0.1940; New Hampshire – $0.1761 Company Weighted Average Retail Rate ($/kWh) U.S. National Average(1) $0.1081 Pacific Power $0.0941 13% lower than the U.S. National Average Rocky Mountain Power $0.0774 28% lower than the U.S. National Average MidAmerican Energy $0.0733 32% lower than the U.S. National Average Nevada Power $0.1019 6% lower than the U.S. National Average Sierra Pacific $0.0818 24% lower than the U.S. National Average BHE Pipeline Group Mastio No. 1 for the 14th consecutive year

Strong Credit Profile

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(1) Moody’s / S&P / DBRS. Ratings are issuer or senior unsecured ratings unless otherwise noted (2) Refer to the Appendix for the calculations of key ratios (3) Ratings are senior secured ratings (4) ALP’s reported FFO is adjusted for disallowed capital costs and future income tax re-measurement

Credit ratios continue to support our credit ratings

Credit Metrics

FFO Interest Coverage FFO / Debt Debt / Total Capitalization Credit Ratings(1) Average LTM 9/30/19 2018 2017 Average LTM 9/30/19 2018 2017 LTM 9/30/19 2018 2017 Berkshire Hathaway Energy(2) A3 / A- 4.4x 4.4x 4.5x 4.4x 16.0% 15.8% 16.3% 15.8% 56% 57% 58% Regulated U.S. Utilities PacifiCorp(2) (3) A1 / A+ 5.0x 4.7x 5.1x 5.3x 21.5% 19.2% 22.3% 23.1% 48% 47% 48% MidAmerican Energy(2) (3) Aa2 / A+ 6.8x 6.1x 6.8x 7.6x 24.2% 21.2% 23.4% 28.1% 47% 47% 47% Nevada Power(2) (3) A2 / A+ 4.9x 4.9x 4.8x 4.9x 24.7% 28.3% 23.0% 22.8% 44% 49% 53% Sierra Pacific Power(2) (3) A2 / A+ 6.3x 5.9x 6.8x 6.1x 20.4% 20.1% 22.0% 19.2% 47% 48% 50% Regulated Pipelines and Electric Distribution Northern Natural Gas A2 / A 8.7x 8.2x 8.6x 9.2x 33.8% 28.8% 31.5% 41.1% 39% 37% 34% AltaLink, L.P.(3)(4) – / A / A 4.1x 4.1x 4.1x 4.1x 12.0% 11.8% 11.9% 12.2% 60% 60% 60% Northern Powergrid Holdings Baa1 / A- 4.5x 4.7x 4.4x 4.5x 17.7% 18.4% 17.2% 17.7% 41% 42% 43% Northern Powergrid (Northeast) A3 / A Northern Powergrid (Yorkshire) A3 / A

Capital Investment Plan

22

7,582 7,096 7,235 5,529 4,433 3,920 $- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 2019 Current 2019 Prior 2020 Current 2020 Prior 2021 Current 2021 Prior ($ millions) PacifiCorp MidAmerican Funding NV Energy Northern Powergrid BHE Pipeline Group BHE Renewables BHE Transmission HomeServices and Other Capex by Type Current Plan 2019-2021 Prior Plan 2019-2021 Variance Operating $ 9,439 $ 8,746 $ 693 Wind Generation (Growth) 5,813 4,990 823 Other Growth 2,333 1,727 606 Electric Transmission (Growth) 1,665 1,082 583 Total $ 19,250 $ 16,545 $ 2,705 Capex by Business Current Plan 2019-2021 Prior Plan 2019-2021 Variance PacifiCorp $ 6,455 $ 5,431 $ 1,024 MidAmerican Funding 5,767 5,039 728 NV Energy 1,819 1,935 (116) Northern Powergrid 1,929 1,564 365 BHE Pipeline Group 1,729 1,481 248 BHE Renewables 290 245 45 BHE Transmission 1,082 701 381 HomeServices and Other 179 149 30 Total $ 19,250 $ 16,545 $ 2,705 7,582 7,096 7,235 5,529 4,433 3,920 $- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 2019 Current 2019 Prior 2020 Current 2020 Prior 2021 Current 2021 Prior ($ millions) Operating Wind Generation (Growth) Other Growth Electric Transmission (Growth)

(1) Net MW owned in operation and under construction as of

September 30, 2019

(2) All or some of the renewable energy attributes associated with

generation from these generating facilities may be: (a) used in future years to comply with renewable portfolio standards or other regulatory requirements, or (b) sold to third parties in the form of renewable energy credits or other environmental commodities

• Headquartered in Portland, Oregon
• 5,200 employees
• 1.9 million electric customers in six

western states

• 11,820 MW of owned capacity(1)
• Owned capacity by fuel type

9/30/19 3/31/06 – Coal 48% 72% – Natural gas 24% 13% – Hydro(2) 9% 14% – Wind, geothermal and other(2) 19% 1%

PacifiCorp

23

PacifiCorp – Business Update

24

• Actual retail load for the nine months ended September 30, 2019, was 41,528 GWh; an approximate 113 GWh increase

compared with the same time period last year with drivers being favorable, residential and commercial growth due to increases in number of customers, and favorable weather impacts

• Energy Vision 2020

– PacifiCorp’s Energy Vision 2020 program will repower 1,039 MW of existing company-owned wind facilities, acquire 950 MW of new wind projects, add 200 MW of wind procured through a power purchase agreement and build a new 140-mile, 500 kV transmission line – The Energy Vision 2020 projects are on schedule to be placed in service by year-end 2020 to deliver benefits to customers and improve transmission transfer capacity and reliability

• Incremental Renewable Resources

– 240 MW Pryor Mountain in Carbon County, Montana will be placed in-service in December 2020 – Acquired remaining 21.2% ownership in the Foote Creek wind facility. PacifiCorp now owns 100% of the capacity of Foot Creek, increasing the capacity by 9 MW

• PacifiCorp’s 2019 Integrated Resource Plan (IRP) — Pursuing Renewables and Clean Energy Policies

– PacifiCorp’s 2019 plan was filed with its state commissions in October 2019 – Updated every two years, the plan identifies the best mix of resources to serve customers in the future – The plan filing supports PacifiCorp's goals of purchasing renewables and developing clean energy policies – The 2019 plan includes:

• More than 3,500 MW of new wind generation by 2025, and a total of more than 4,600 MW of new wind

generation by 2038

• Nearly 3,000 MW of new solar by 2025, and more than 6,300 MW of new solar generation by 2038
• Nearly 600 MW of battery storage by 2025, and more than 2,800 MW of battery storage by 2038
• Construction of a new 400-mile transmission line known as Gateway South connecting southeastern

Wyoming and northern Utah

• Coal plant retirements that reduce coal-fueled generation capacity by nearly 2,800 MW by 2030, and by

nearly 4,500 MW by 2038

PacifiCorp – Business Update

25

• Strong cost containment has minimized rate increases while continuing to improve safety, reliability and customer

service – PacifiCorp has stay-out pledges in Utah, Oregon and Wyoming, and made a customer pledge to not increase base rates prior to 2021 – Rate reductions implemented in Utah, Idaho and Wyoming in 2018 to begin passing back a portion of 2017 Tax Reform benefits – Rate reductions implemented in Oregon and Washington in 2019 to begin passing back a portion of 2017 Tax Reform benefits. A decision authorizing the return of Tax Reform benefits to customers is pending in California – Energy cost adjustment mechanisms exist in all six states where PacifiCorp has operations – A new customer generation program was implemented in Utah to transition from net metering beginning December 1, 2017

• Applications for interconnection of new customer generation in 2019 have dropped more than 80%

compared to applications in 2017

• Wildfire Mitigation

– California Senate Bill 901 requires electric utilities to develop annual wildfire mitigation plans to prevent, combat and respond to wildfires within their service territories

• PacifiCorp used the California fire threat modeling process to evaluate the fire risk throughout its service

territory; areas highlighted were in southern Oregon; Park City, Utah; and a small number of other isolated locations that it titled Fire High Consequence Areas

• In May 2019, the California Public Utilities Commission approved PacifiCorp’s plan
• The company has continued to implement aspects of its plan and reported on the progress as required by

the commission – Subsequently, California Assembly Bill 1054 established a wildfire fund to support the creditworthiness of electrical corporations, among other things

• PacifiCorp filed official notice with the commission that it will not participate in the fund

PacifiCorp – Business Update

26

• Oregon Clean Electricity and Coal Transition Plan signed into law by Gov. Brown in March 2016

– Doubled renewable energy portfolio standard to 50%

• 20% by 2020, 27% by 2025, 35% by 2030, 40% by 2035, 50% by 2040
• Incorporates renewable energy credit banking provisions

– Removes coal costs from Oregon rates by January 1, 2030 – Allows production tax credits to be annually adjusted as part of a Net Power Cost Adjustment

• Washington Senate Bill 5116 and House Bill 1211 – Clean Energy Transformation Act

– Key provisions:

• Coal out of rates by 2025
• 80% renewable by 2030 with compliance options for remaining 20%
• 2% cost cap measured over a four-year compliance period; if the cost cap is triggered,

the utility is deemed to be in compliance

• Compliance penalty = $100/MWh with multiplier depending on type of fossil generation
• Sets mandate of 100% carbon free electricity sector by 2045

– PacifiCorp is participating in extensive rule-making activities and serves on a working group to align requirements of the new law with regional electricity markets – PacifiCorp is currently negotiating a new multistate cost allocation agreement among its states that may address some of Washington’s policy direction

PacifiCorp – Business Update

27

• Utah Sustainable Transportation and Energy Plan

– PacifiCorp’s application to implement the legislatively mandated plan was approved by Utah regulators in three phases – The orders approved a five-year pilot program (2017 to 2021) with a budget of $10 million each year, including:

• Deferment of Demand Side Management costs in a regulatory asset and amortized over 10 years
• A risk mitigation fund to minimize the rate impact to customers for coal-fueled generation plants due

to compliance requirements or other purposes

• Mandated full recovery of Utah’s share of fuel, purchased power and other supply costs through an

Energy Balancing Account that is not fully in the base rates through 2019

• Rocky Mountain Power supported legislation that was signed into law in 2019 permanently

removing the 2019 sunset date

• Wyoming Senate Enrolled Act 74

– Effective July 2019, and requires electric utilities to make a good faith effort to sell a coal-fueled generation facility in Wyoming before it can receive recovery in rates for capital costs associated with new generation facilities built, in whole or in part, to replace the retiring coal facility – If the plant is successfully sold, the electric utility is obligated to purchase the electricity from the facility through a power purchase agreement at a price that is no greater than the utility’s avoided cost, as determined by the Wyoming Public Service Commission. Costs associated with an approved power purchase agreement are expected to be recoverable in rates from Wyoming customers – PacifiCorp is working with the commission and other stakeholders to determine the implementation

• process. The overall impacts of this legislation cannot be determined at this time

MidAmerican Energy

28

• Headquartered in Des Moines, Iowa
• 3,400 employees
• 1.6 million electric and natural gas customers

in four Midwestern states

• 11,379 MW(1) of owned capacity
• Owned capacity by fuel type

9/30/19(1) 12/31/00 – Wind(2) 60% 0% – Coal 24% 70% – Natural gas 12% 19% – Nuclear and other 4% 11%

(1) Net MW owned in operation and under construction as of September 30, 2019 (2) All or some of the renewable energy attributes associated with generation from

these generating facilities may be: (a) used in future years to comply with renewable portfolio standards or other regulatory requirements, or (b) sold to third parties in the form of renewable energy credits or other environmental commodities

MidAmerican Energy service area Major generating facilities Operational wind farms Wind farms to begin generating in 2019

IOWA

MidAmerican Energy – Business Update

29

• Customer growth, warmer-than-normal summer weather, colder-than-normal winter weather and improved

industrial sales increased retail electric sales 175 GWh for the nine months ended September 30, 2019, a 0.9% increase over the same period in 2018

• MVP transmission build-out completed
• No electric base rate increases anticipated until late 2020s
• Wind XI

– Approved in 2016 – up to 2,000 MW – $3.6 billion approved cost cap deemed prudent – Qualifies for 100% of eligible production tax credit rate – 1,345 MW in-service through September 30, 2019; remainder expected to be complete by year-end 2019

• Wind XII

– Approved in 2018 – up to 591 MW – $922 million approved cost cap deemed prudent – Qualifies for 100% of eligible production tax credit rate – Completion expected between fourth quarter 2019 and fourth quarter 2020

• Wind XII Expansion

– Proceeding without pre-authorization sought from the Iowa Utilities Board – Comprised of 205 MW of additional wind-powered facilities with an estimated cost of $300 million – Qualifies for 100% of eligible production tax credit rate – Completion expected in 2020

MidAmerican Energy – Business Update

30

• Wind repowering

– Production tax credits will be reinstated for another 10-year period – Improved capacity factors from longer blades and more efficient equipment, resulting in greater generation – GE fleet

• $1,129 million incurred through September 30, 2019, including AFUDC
• 615 turbines comprising 924 original MW repowered through September 30, 2019
• 91 turbines comprising 136 original MW repowered in remainder of 2019 and 2020
• 100% of production tax credits rate expected for all projects

– Siemens fleet

• $233 million incurred through September 30, 2019, including AFUDC
• 334 turbines comprising 768 original MW repowered in 2019 through 2021 (of which 4 MW has

been repowered as of September 30, 2019) at 80% of full production tax credit rate

• 176 turbines comprising 407 original MW repowered in 2022 at 60% of full production tax credit rate
• Other generation projects

– Additional cost-effective wind and solar generation projects continue to be evaluated in an effort to maintain and further expand the company’s renewable commitment to retail customers

NV Energy Overview

31

• Headquartered in Las Vegas, Nevada, with territory

throughout Nevada

• 2,500 employees
• 1.3 million electric and 170,000 gas customers
• Service to 90% of Nevada population, along with

tourist population in excess of 45 million

• 6,011 MW(1) of owned power generation

(91% natural gas, 9% coal/renewable/other)

(1) Net MW owned in operation as of September 30, 2019

Nevada Power Sierra Pacific Power Service Territory Las Vegas and surrounding areas Reno and northern Nevada Customers 950,000 electric 350,000 electric 170,000 gas Power Capacity 4,639 MW 1,372 MW

32

• Retail load growth

– Nevada Power – Actual retail load for the nine months ended September 30, 2019 was 17,679 GWh, a decrease of 755 GWh relative to the same period in 2018. Normal weather for the nine months ended September 30, 2019 compared to unusually warm weather in 2018 caused the majority of the decrease – Sierra Pacific Power – Actual retail load for the nine months ended September 30, 2019 was 8,201 GWh, an increase of 409 GWh relative to the same period in 2018, primarily due to customer growth

• NV Energy’s 2019 Integrated Resource Plan (IRP) - Advancing environmental respect

– In February 2019, the Public Utilities Commission of Nevada issued a final order approving six power purchase agreements for 1,001 MW of solar photovoltaic generation, the projects include 100 MW of co-located battery storage; and early conditional retirement of NV Energy's 50% interest in the coal-fueled North Valmy Generating Station Unit 1 – In June 2019, NV Energy filed an amendment to the integrated resource plan seeking approval of three power purchase agreements for 1,190 MW of solar photovoltaic generation and 590 MW of integrated battery storage – NV Energy filed an uncontested stipulation recommending approval of the three power purchase agreements on October 18, 2019 – The commission is expected to issue an order in the amendment application in December 2019

• Renewable portfolio standard

– Senate Bill 358 increased the renewable portfolio standard to 50% by 2030 – NV Energy is positioned to comply with the renewable portfolio standard ahead of 2030

NV Energy – Business Update

NV Energy – Business Update

33

• 704B applications

– Since 2016 only five customers have formally transitioned to distribution-only service having a total estimated peak of 400

• MW. Two existing and four new customers (not currently on the system) received 704B approval but have not yet become

distribution-only service customers – There are no pending applications before the Public Utilities Commission of Nevada for customers pursuing the statutory right to utilize an alternative energy provider

• The reduction and withdrawal of 704B applications is a result of 2019 legislation, the company’s customer retention

efforts, and the planned rate reductions for Nevada Power ($120 million) and Sierra Pacific ($5 million) customers

• The Nevada Legislature amended the 704B statute to establish annual limits on the total amount of energy and

capacity that eligible customers may be authorized to purchase from wholesale energy providers and established licensing provisions for alternative energy providers

• Natural disaster mitigation

– The Nevada Legislature enacted Senate Bill 329 for the prevention of natural disasters, including wildfires. The legislation requires submission of a natural disaster protection plan to the commission and authorizes the company to recover costs associated with implementation of the plan through a separate rate rider – On October 30, 2019, NV Energy filed a stipulation with the commission recommending the establishment of regulatory asset accounts to track and recover costs associated with natural disaster mitigation

• General rate review

– Sierra Pacific Power filed its triennial general rate review for electric operations in June 2019, and on September 24, 2019, filed a stipulation supported by all participating parties which, if approved by the commission, would resolve the cost of capital and revenue requirement phases of the proceeding

• Key aspects of the stipulation include a $5 million revenue requirement reduction, an authorized return on equity of

9.5%, and a mechanism to share earnings in excess of 9.7% equally between Sierra Pacific Power and customers – Nevada Power will file its triennial general rate review in June 2020 and anticipates requesting a $120 million reduction in revenue requirement for rates effective January 2021 through December 2023

• The lower revenue requirement is largely driven by reductions in long-term interest expense, tax reform savings and
• verearnings accrued for customer benefit during the 2018 and 2019 periods

Leeds Edinburgh Middlesbrough Newcastle Upon Tyne Sheffield York

Northeast Yorkshire

• 3.9 million end-users in northern England
• Approximately 60,000 miles of distribution lines
• Approximately 58% of 2019 distribution revenue from

residential and commercial customers through September 30, 2019

• Distribution revenue (£ millions):
• Strong performance in ED1 period (eight-year price

control started April 2015); expect to outperform

• utput targets and exceed many of the commitments

made to stakeholders, all within the cost allowances set by Ofgem

Nine Months Ended 9/30/19 9/30/18 Residential 223 221 Commercial 65 68 Industrial 202 192 Other 5 5 Total 495 486

Northern Powergrid

34

Northern Powergrid – Business Update

35

• Ofgem is signalling lower returns in the next price control period, ED2, running for five years beginning in April

2023 – Ofgem’s current view of the cost of equity for Transmission and Gas Distribution 2 (T1/GD2, which is 2 years ahead of ED2), is 4.3% plus CPIH indexation alongside tougher targets, weaker incentives and introducing a backstop return adjustment mechanism – Ofgem has made moves in the right direction from initial T1/GD2 proposals, and we believe there is scope to get to a fair price control with sufficiently strong incentives. ED2 starts later, faces more change from decarbonization and impacts more companies; all of these factors give scope for improvements in the price control at ED2 compared to T2/GD2 – Smart meter rental business has been a success from its initial launch in April 2014, with the company securing contracts to deploy 3.5 million meters before the end of 2021, resulting in total capital deployed

• f over £572 million. Through September 30, 2019, £397 million of capital has been deployed
• In October 2019, CalEnergy Resources Limited, a Northern Powergrid subsidiary, closed on a transaction with

Independent Oil and Gas plc to become a joint owner of a portfolio of Southern North Sea assets – The company made an initial upfront payment and committed to the first phase of what has the potential to become a four-phase development if early projects are successful – The first phase involves deployment of £331 million of development capital split over three separate projects that will bring the first three gas fields on stream. The first phase includes acquiring and re- commissioning an existing gas transportation pipeline already constructed and previously in service – Phase 1 includes three fields that have proven and probable reserves and production has been successfully tested – Upon completion, the company will acquire 50% of the existing pipeline that brings gas to shore and the associated onshore processing facilities required to take the gas to market

Northern Natural Gas

36

• Headquartered in Omaha, Nebraska
• Approximately 900 employees
• 14,700-mile interstate natural gas transmission

pipeline system

• 6.0 Bcf per day of market area design capacity;

1.73 Bcf per day field area capacity to demarcation and 1.4 Bcf per day of Permian area capacity

• More than 79 Bcf of firm service and operational

storage cycle capacity

• 90% of transportation and storage revenue in 2019

is contracted based on fixed amounts (demand charges) that are not dependent on the volumes transported − Market area transportation contracts have a weighted average contract term of eight years − Storage contracts have a weighted average contract term of seven years

• Increased the integrity and reliability of the pipeline
• Ranked No. 1 among 16 mega-pipelines and No. 1

among 34 interstate pipelines in 2019 Mastio & Company customer satisfaction survey

$- $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 2004 (last rate case) 2019

($ Millions)

Rate Base

Northern Natural Gas Regulatory Update

37

• On January 16, 2019, FERC initiated a Section 5 rate proceeding

–

In the filing, FERC initially calculated a pro-forma return of 17.3%; however, FERC later corrected their calculated return to 14.3%

–

Northern filed a full cost and revenue study April 1, 2019

–

The base period for the cost and revenue study is calendar year 2018

• Northern filed a Section 4 rate case July 1, 2019

–

Cost of service is $300 million above currently effective rates

• Increase driven by maintenance capital spending and change in book depreciation and negative

salvage rates

–

Market area rate increase of approximately 90%

–

Storage rate increase above 100%

–

First rate case in 15 years

–

Rate case could last two to three years before resolution

–

Section 5 rate proceeding has been consolidated with the Section 4 rate case, effective September 12, 2019, which effectively ends the Section 5 rate proceeding

• 1,700-mile interstate natural gas transmission

pipeline system

• Design capacity of 2.2 million Dth per day of

natural gas

• 84% of revenue through September 30, 2019,

is based on demand charges

• Weather and other pipeline outages in 2019

have driven volatility of gas spreads, resulting in strong earnings and throughput

• Contracted capacity has a weighted average

contract term of seven years

• Kern River delivered nearly 30%(1) of

California’s natural gas demand in 2018

• Ranked No. 2 among 34 interstate pipelines

in 2019 Mastio & Company customer satisfaction survey

Kern River

38

CALIFORNIA NEVADA ARIZONA UTAH WYOMING

(1) 2019 California Gas Report

AltaLink, L.P.

39

• AltaLink owns and operates regulated

electricity transmission facilities in the province of Alberta – Supplies electricity to approximately 85%

• f Alberta’s population
• AltaLink owns approximately 8,200 miles of

transmission lines and 310 substations within the province of Alberta – No volume or commodity exposure – Supportive regulatory environment – Revenue from AA- rated Alberta Electric System Operator

• Midyear 2019 forecast rate base of

C$7.5 billion and CWIP of C$57 million as per the 2019 to 2021 General Tariff Application filing

AltaLink, L.P. – Business Update

40

• 2014 to 2015 Direct Assign Capital Deferral Account

– On December 30, 2018, the Alberta Utilities Commission approved the majority of the C$3.8 billion in capital costs – The commission disallowed approximately C$30 million of costs, representing 0.7% of total capital additions applied for – Berkshire Hathaway Energy recovered C$14.8 million of the disallowance under the terms of the AltaLink Purchase and Sale Agreement with SNC-Lavalin – The Commission has approved C$10 million of carrying costs associated with the unsettled DACDA receivable

• 2016 to 2018 Direct Assign Capital Deferral Account

– Proceeding was initiated June 27, 2019 – Application includes C$976 million in gross capital additions including AFUDC

• 2021 Generic Cost of Capital Proceeding

– Process timeline includes filling of expert evidence by January 2020, with a hearing expected in second quarter 2020. A decision is expected before year-end 2020 – The commission indicated that it intends to explore the possibility of returning to a formula-based approach to setting cost of capital parameters in subsequent Generic Cost of Capital proceedings – Current approved parameters include an 8.5% ROE and 37% equity thickness for the years 2018 through 2020

AltaLink, L.P. – Business Update

41

• 2019 to 2021 General Tariff Application

– Filed August 23, 2018 – The application includes the first three years of a five-year commitment (2019 to 2023) to keep customer rates at no higher than the 2018 approved tariff of C$903.5 million – On June 13, 2019, a letter was filed with the commission advising that AltaLink had reached a negotiated settlement with customers – Under the agreement, AltaLink will reduce operating expenses by C$22.5 million and sustaining capital by C$58.0 million for 2019 to 2021, in addition to a refund of C$31.0 million of previously collected depreciation – The agreement does not include a proposed change to the method of funding salvage and excludes certain capital programs that will be part of an application hearing – An oral hearing is scheduled for fourth quarter 2019

• Alberta Electric System Operator Tariff Decision

– On September 22, 2019, the Alberta Utilities Commission approved AltaLink’s proposal to refund FortisAlberta (Fortis) customer contributions which would increase AltaLink's capital investment by approximately C$375 million – The proposal would benefit customers by flowing through AltaLink’s lower cost of capital rather than Fortis’ higher cost of capital – The timing and amount of any refund remains uncertain as the Commission has granted Fortis’ request for Review and Variance application

BHE Renewables

42 (1) Based on actual generation from September 30, 2018, through September 30, 2019 (2) Approximately 100 off-takers for the purchase of all the energy produced by the solar portfolio for a period up to 25 years (3) Separate PPAs exist with Missouri Joint Municipal Electric Commission (20 MW), Kansas Power Pool (25 MW), City of Independence, Missouri (20 MW) and Kansas Municipal Energy Agency (7 MW) (4) 29% of the company's interests in the Imperial Valley Projects' Contract Capacity are currently sold to Southern California Edison Company under long-term power purchase agreements expiring in 2020 through 2026. Certain long-term power purchase agreement renewals for 252 MW have been entered into with other parties at fixed prices that expire from 2028 to 2039, of which 202 MW mature in 2039 BHE Solar Geothermal Natural Gas BHE Wind BHE Hydro CalEnergy Philippines

Wind 39% Geothermal 17% Hydro 2% Natural Gas 17% Solar 25%

Portfolio Composition (1)

Location Installed PPA Expiration Power Purchaser Net or Contract Capacity (MW) Net Owned Capacity (MW) SOLAR Solar Star I & II CA 2013-2015 2035 SCE 586 586 Topaz CA 2013-2014 2039 PG&E 550 550 Agua Caliente AZ 2012-2013 2039 PG&E 290 142 Alamo 6 TX 2017 2042 CPS 110 110 Community Solar Gardens MN 2016-2018 (2) (2) 98 98 Pearl TX 2017 2042 CPS 50 50 1,684 1,536 WIND Grande Prairie NE 2016 2036 OPPD 400 400 Pinyon Pines I & II CA 2012 2035 SCE 300 300 Jumbo Road TX 2015 2033 AE 300 300 Santa Rita TX 2018 2038 Various 300 300 Walnut Ridge IL 2018 2028 USGSA 212 212 Bishop Hill II IL 2012 2032 Ameren 81 81 Marshall Wind KS 2016 2036 (3) 72 72 1,665 1,665 GEOTHERMAL Imperial Valley CA 1982-2019 (4) (4) 346 346 HYDROELECTRIC Casecnan Phil. 2001 2021 NIA 150 128 Wailuku HI 1993 2023 HELCO 10 10 160 138 NATURAL GAS Cordova IL 2001 2019 EGC 512 512 Power Resources TX 1988 2021 EDF 212 212 Saranac NY 1994 2019 TEMUS 245 196 Yuma AZ 1994 2024 SDG&E 50 50 1,019 970 Total Owned 4,874 4,655

• Topaz Project – PG&E bankruptcy update

– Both PG&E and the ad-hoc unsecured noteholder group’s plan of reorganization have pledged to honor legacy renewable PPAs

• Through October 2019, all post-petition monthly sales invoices have been paid in full by

PG&E on their due date

• Wind tax equity update

– Tax equity investments enable investment in new renewable energy projects – Accounted for as equity method investments

• Battery storage

– Currently have a solar plus energy storage pilot project that became operational in September 2018. The 60 kW/548 kWh project was completed at Solar Star in California – Developing solar plus energy storage projects with a combined output of 48 MW, with a targeted commercial operation date of 2020 to 2021 and will be adjacent to Solar Star in California

BHE Renewables – Business Update

43

2015 2016 2017 2018 YTD 9/30/2019 Future Commitments Total Capacity (MW) 204 829 602 808 1,490 2,863 6,796 Investment ($ in millions) $170 $584 $403 $698 $ 1,145 $ 2,416 $5,416 Invested by Year

BHE Renewables Operational Performance

44

1,000 2,000 3,000 4,000 5,000 6,000 2014 2015 2016 2017 2018 LTM 2019

Thousands of MWhs

Owned Generation by Type

Solar Wind Geothermal Hydro Natural Gas

2017 Capacity Factor 2018 Capacity Factor 2019 Capacity Factor Wind 36.2% 39.3% 39.6% Solar 29.8% 29.0% 29.9% Geothermal 82.4% 84.5% 79.5% Hydro 38.4% 35.7% 26.6% Natural Gas 2.4% 9.3% 35.1% Total 29.7% 32.4% 38.0%

2020 Financing Plan

45

• A Berkshire Hathaway Energy debt offering is possible and is dependent on capital

markets and investment opportunities

Issuances Maturities Company Approximately ($ millions) Anticipated Issue Date ($ millions) Maturity Date PacifiCorp $850 Third Quarter 2020 $ - Nevada Power Company $725 First Quarter 2020 $575 April 15, 2020 Northern Powergrid - Northeast £250 Second Quarter 2020 £139 February, October 2020 AltaLink, L.P. & AILP C$625 Second/Third Quarter 2020 C$325 June, September 2020

Environmental, Social and Governance (ESG) Positioning ourselves for a sustainable future

Our Balanced Long-Term Approach Leads to a Culture of Sustainability

Berkshire Hathaway Energy recognizes the importance of reducing our environmental footprint by minimizing the impact of our operations on the environment. From reducing our air emissions and conserving water to protecting sensitive plant and animal species and their habitats, our Environmental RESPECT policy details our commitment in the areas of Responsibility, Efficiency, Stewardship, Performance, Evaluation, Communication and Training. Our core principles – customer service, employee commitment, environmental respect, regulatory integrity, operational excellence and financial strength – guide our decisions as we work to provide balanced outcomes for all stakeholders

• Sustainability is naturally a part of this balanced approach
• The approach addresses long-term issues, risks and opportunities aligned with our vision and core principles
• Aligns the objectives of providing safe, reliable and affordable clean energy
• Committed and supportive leadership and owners
• Committed and engaged employees

Environmental

• Renewables investments
• Environmental Respect Index
• Species protection
• Carbon reduction efforts
• Methane emissions reduction
• Green bonds

Social

• BHE CARES – global giving

and volunteering

• Customer first
• Veterans Engagement and

Retention Network

• Diversity and Inclusion Policy

Governance

• Our board of directors own or

represent entities that own 100%

• f Berkshire Hathaway Energy’s

common stock

• Berkshire Hathaway Energy

Code of Business Conduct

• Berkshire Hathaway Inc.

Code of Business Conduct and Ethics

47

Advancing a Sustainable Energy Future

48

• Berkshire Hathaway Energy is a leader in renewable energy. As of September 30, 2019, approximately

43% of our businesses’ owned generation capacity (operating and under construction) comes from non-carbon resources – Through September 30, 2019, Berkshire Hathaway Energy has spent $28.2 billion on renewable energy, and has made commitments to spend an additional $6 billion on wind generation by 2022 – The America Wind Energy Association’s 2019 Annual Market Report listed Berkshire Hathaway Energy as the largest investor-owned utility of regulated operating wind-power capacity – As we advance sustainable energy solutions, we are helping our customers achieve their sustainability goals and reduce environmental impact through increasing the amount of renewable energy we generate, empowering customers to conserve and manage their energy use, and partnering with them on unique projects

• One example of these efforts is an innovative partnership at a newly constructed all-electric,

net-zero residential multi-family community that will be partially powered by 5 megawatts of

• n-site solar panels with battery storage located in each of the 600 apartments, totaling

12.6 megawatt-hours of energy storage that is controlled by Rocky Mountain Power for the benefit of the community and the broader grid as a real-time dispatchable distributed energy solution – MidAmerican Energy is the largest owner in the U.S. of rate-regulated wind capacity, with 6,803 MW in operation or under construction. In 2018, MidAmerican Energy generated wind energy equivalent to approximately 51% of its Iowa customers’ annual retail electric usage. Once Wind XI, Wind XII, and the Wind XII expansion are completed (expected late 2020) adding up to 2,796 MW of wind generation, MidAmerican Energy is expected to meet 100% of its Iowa and South Dakota customers’ energy use on an annual basis with renewable, zero-carbon energy, becoming the first major utility in the U.S. to do so for its customers

Advancing a Sustainable Energy Future

49

• PacifiCorp’s Energy Vision 2020 program will repower 1,039 MW of existing company-owned wind

facilities, acquire 950 MW of new wind projects, add 200 MW of wind procured through a power purchase agreement and build a new 140-mile, 500 kV transmission line. The projects are on schedule to be placed in service by year-end 2020 to deliver benefits to customers and improve transmission transfer capacity and reliability. In October 2019, PacifiCorp filed its Integrated Resource Plan, which includes the addition of more than 4,600 MW of new wind generation, 6,300 MW of new solar generation, 2,800 MW of battery storage, and nearly 4,500 MW of coal plant retirements through 2038

• As part of its Integrated Resource Plan filed in 2019 and as amended, NV Energy announced plans to

enter into power purchase agreements to procure generation from nearly 2,200 MW of solar generation and almost 700 MW of battery storage by 2024. Beyond 2024, the resource plan includes nearly 2,000 MW of additional solar generation and 100 MW of geothermal generation through 2038 which is consistent with Nevada’s energy policy to increase the amount of renewable energy. Nevada Power is retiring its last coal unit by year end 2019

• Owned coal-fueled capacity has declined as a percentage of Berkshire Hathaway Energy’s power

capacity portfolio from 58% in 2006 to 26% as of September 30, 2019. Since 2013, Berkshire Hathaway Energy has retired or has plans to retire approximately 6,400 MW (61% reduction) of coal generation capacity by 2038

• Berkshire Hathaway Energy’s natural gas transmission pipelines’ operational practices and methane

leak detection programs are designed to minimize the release of methane emissions. These leading practices resulted in the gas transmission pipelines’ combined leak rates, measured as a percentage of throughput, of 0.05% in 2018, which is significantly less than the industry average and goal of the ONE Future Initiative of 1%

• Additional information regarding our sustainability and environmental outlook can be found at

www.brkenergyco.com/environment

• In addition to owned renewable capacity, Berkshire Hathaway Energy’s regulated utilities have renewable energy power

purchase agreements for more than 4,100 MW. By the end of 2020, NV Energy plans to enter contracts to purchase approximately 2,500 MW of additional solar energy and PacifiCorp expects to have entered into contracts to purchase approximately 1,000 MW of additional wind and solar energy

Supporting a Cleaner Energy Future $34.1 Billion Renewable Investments

$17.7 $21.2 $6.6 $6.6 $0.9 $0.9 $3.0 $5.4

$28.2 $34.1

Q3 2019A 2022E

Remaining capital to be deployed

• $3.5 billion – Wind development and repowering
• $2.4 billion – Wind tax equity funding

Wind Solar Geothermal and Other Wind Tax Equity ($ billions)

50

Net Owned Operating Capacity (MW) September 2019 December 2022 Wind Solar Other Wind Solar Other PacifiCorp 1,039

• 32

2,229

• 32

MidAmerican Energy 5,352

• 6,803
• NV Energy
• 15

5

• 15

5 BHE Renewables 1,665 1,536 346 1,665 1,536 346 8,056 1,551 383 10,697 1,551 383

Reducing Our Carbon Footprint

• Through fuel switching and retirements, our utilities expect to eliminate 6,400 MW of coal generation

through 2037 (a 61% reduction in coal capacity since 2013)

(1) Adjusted for re-rating of coal plants between December 31, 2013, and December 31, 2018, including plants still in operation and retired Coal MW as of Dec. 31, 2013(1) Year Retired 10,499 MW Riverside 3 2014 (4) MW Reid Gardner 1-3 2014 (300) MW Carbon 1-2 2015 (172) MW Riverside 5 – conversion to natural gas 2015 (124) MW Walter Scott 1-2 2015 (124) MW Neal 1-2 2016 (390) MW Reid Gardner 4 2017 (257) MW Naughton 3 – conversion to natural gas 2019 (280) MW Navajo – interest to be divested 2019 (255) MW Cholla 4 – assumed retirement 2020 (395) MW North Valmy 1 – planned retirement 2021 (127) MW Jim Bridger 1 – assumed retirement 2023 (354) MW Craig 1 – assumed retirement 2025 (82) MW North Valmy 2 – planned retirement 2025 (134) MW Naughton 1-2 – assumed retirement 2025 (357) MW Craig 2 – assumed retirement 2026 (79) MW Colstrip 3-4 – assumed retirement 2027 (148) MW Dave Johnston 1-4 – assumed retirement 2027 (745) MW Jim Bridger 2 – assumed retirement 2028 (359) MW Hayden 1-2 – assumed retirement 2030 (77) MW Huntington 1-2 – assumed retirement 2036 (909) MW Jim Bridger 3-4 – assumed retirement 2037 (702) MW Coal MW as of Dec. 31, 2037 4,125 MW

51

10,499 MW

4,125 MW

61%

REDUCTION

Energy Imbalance Market Provide Customer Savings and Carbon Reduction

52

November 2014 – September 2019 Combined Benefits

Balancing Area Authority Total ($ millions) CAISO $189.5 PacifiCorp $224.0 NV Energy $82.4 Arizona Public Service $123.0 Puget Sound Energy $38.3 Portland General Electric $62.5 Idaho Power $49.0 Powerex $19.2 Balancing Authority of Northern California $13.2 Total $801.1

• The energy imbalance market is an innovative market that allows

utilities across the West to access the lowest cost energy available in near real-time, making it easy for zero-fuel-cost renewable energy to go where it’s needed and reduce carbon emissions. Through September 2019, cumulative benefits have totaled $801 million

• PacifiCorp and California ISO launched the Energy Imbalance Market

in November 2014. NV Energy joined in December 2015. Berkshire Hathaway Energy customer benefits total $306 million

CO2 Emissions Intensity

0.783 0.527

• 20,000

40,000 60,000 80,000 100,000 120,000 140,000

• 0.150

0.300 0.450 0.600 0.750 0.900 2005 2018 Net Generation (in GWh) Emissions Intensity (in Co2 000’s of MT/GWh) Emissions Intensity Net Generation

Berkshire Hathaway Energy

2005 (1) (2) 2018 (2) CO2 Metric Tons (000’s) Net GWh MT (000’s) / GWh CO2 Metric Tons (000’s) Net GWh MT (000’s) / GWh PacifiCorp 49,001 58,221 .842 43,248 61,509 .703 MidAmerican Energy 18,380 22,856 .804 16,216 34,249 .473 NV Energy 10,792 14,358 .752 10,872 26,843 .405 BHE Renewables 1,702 6,631 .257 505 11,852 .043 Berkshire Hathaway Energy 79,875 102,066 .783 70,841 134,453 .527

(1) 2005 data is pro forma as if all energy businesses owned today were owned in 2005 (2) The data provided includes generation associated with renewable energy credits which were not retained, and excludes generation and emissions related to market purchases from non-specified sources

53

CO2 Emissions Intensity

0.842 0.703

• 10,000

20,000 30,000 40,000 50,000 60,000 70,000

• 0.200

0.400 0.600 0.800 1.000 2005 2018 Net Generation (in GWh) Emissions Intensity (in Co2 000’s of MT/GWh) Emissions Intensity Net Generation

PacifiCorp

0.804 0.473

• 10,000

20,000 30,000 40,000 50,000 60,000 70,000

• 0.150

0.300 0.450 0.600 0.750 0.900 2005 2018 Net Generation (in GWh) Emissions Intensity (in Co2 000’s of MT/GWh) Emissions Intensity Net Generation

MidAmerican Energy

0.752 0.405

• 10,000

20,000 30,000 40,000 50,000 60,000 70,000

• 0.200

0.400 0.600 0.800 1.000 2005 2018 Net Generation (in GWh) Emissions Intensity (in Co2 000’s of MT/GWh) Emissions Intensity Net Generation

NV Energy

0.257 0.043

• 5,000

10,000 15,000 20,000

• 0.050

0.100 0.150 0.200 0.250 0.300 2005 2018 Net Generation (in GWh) Emissions Intensity (in Co2 000’s of MT/GWh) Emissions Intensity Net Generation

BHE Renewables

54

Electric Vehicle Charging Stations

MidAmerican Energy

• In July 2019, MidAmerican Energy announced an electric vehicle charging station network launch in

15 urban and rural communities across Iowa, which includes two charging plugs per station – To further promote electric vehicle adoption in Iowa, in 2019, MidAmerican Energy started

• ffering electric vehicle and charging station rebates to its customers. The company provides

rebates to residential customers who buy or lease a new electric vehicle and rebates to businesses that purchase Level 2 charging stations, which generally charge electric vehicles in four to eight hours

PacifiCorp

• Rocky Mountain Power is investing to develop electric transportation primarily in Utah and has

developed one of the largest comprehensive utility electric vehicle programs in the country to install EV fast chargers and workplace chargers. In addition, the company has deployed the most traveled electric bus route in the U.S. and developed electric ride hailing programs with LYFT

• Pacific Power is investing to develop electric transportation programs in Oregon, Washington

and California, including EV fast charging in underserved key areas and interest and engagement in non-residential charging across all service areas; and creating partnership

• pportunities with community grants and larger-scale transit funding

NV Energy

• The company is investing in and supporting electric vehicle incentive programs that support

the expansion of electric vehicle infrastructure in Nevada – The Public Utilities Commission of Nevada has authorized incentives for multifamily, workplace, fleet and public charging infrastructure programs – Incentives include rebates for Level 2 and direct current fast chargers – The company, in partnership with the Nevada Governor’s Office of Energy, is providing incentives for construction of fast-charging infrastructure along highway corridors throughout Nevada – The company is authorized to incentivize the electrification of public school bus fleets and charging infrastructure

55

Social

Workforce and Diversity

• We are committed to attracting and retaining the best employees and supporting an environment that reflects

the diversity of our communities

• We are focused on providing a positive employee experience through our engagement, training and development

programs Safety Management

• Keeping our customers, employees and communities safe and secure will always be our top priority
• Based on July 2019 Edison Electric Institute data for electric and gas combination companies without nuclear

employees: – The 2018 median recordable incident rate was 1.20 (50th percentile) – Berkshire Hathaway Energy’s 2018 recordable incident rate was 0.56 (15th percentile) Customer Engagement

• Our U.S. regulated utilities have low-cost competitive rates below the U.S. national average, benefiting customers

and supporting growth and job opportunities in the communities served

• BHE Pipeline Group was No. 1 for the 14th consecutive year in Mastio and Company’s 2019 survey of natural gas

pipeline customers

56

Social

In Our Communities

• Berkshire Hathaway Energy and its businesses sponsor organizations that provide resources to underserved

populations; participate in community service projects; volunteer in local schools to educate parents and children on safety and energy efficiency; and raise funds for numerous charitable organizations to increase the impact we have on the communities we serve and support

57

Organization

• Berkshire Hathaway Energy’s vision is to be the best energy company in serving our

customers, while delivering sustainable energy solutions. Our businesses operate with that a shared vision, culture and set of core principles

• Our board of directors own or represent entities that own 100% of Berkshire Hathaway

Energy’s common stock and we believe this ownership structure supports our strong corporate governance

• Our privately held ownership structure is a major source of financial strength and a competitive advantage. We

have historically not paid dividends allowing us to reinvest 100% of net income back into our businesses to better serve customers and focus on system hardening

Governance

Board Member Role Years on Board Gregory Abel Executive Chairman of the Board 2000-Present William Fehrman President, CEO and Director 2018-Present Walter Scott Jr. Director 1991-Present Warren Buffett Director 2000-Present Marc Hamburg Director 2000-Present

58

Governance

Codes and Values

• We uphold the highest ethical standards and values through the Berkshire Hathaway

Code of Business Conduct and Ethics. We believe a diverse workforce brings significant benefits to our organization. Additionally, we hold our organization accountable to provisions we include in the Berkshire Hathaway Energy Code of Business Conduct. These provisions demonstrate how to approach work, business relationships, decisions, and actions and include: – Treating customers with honesty, respect and dignity – Dealing fairly with customers, suppliers and competitors – Maintaining confidentiality of information – Full, fair, accurate, timely and understandable financial disclosures – Zero-tolerance policy on any type of harassment or behavior that is hostile, disrespectful, abusive or humiliating – Commitment to a safe and healthy environment for all employees Data Protection

• Berkshire Hathaway Energy is vigilant in managing employee and customer data to protect against the release
• f any sensitive information, creating strong layers of defense against cyber and physical security incidents.

We use internationally recognized cybersecurity frameworks to strengthen these efforts Transparency and Reporting

• We are transparent in our operational results and voluntarily report key indicators related to our emissions

data, resource mix, investments in technology, water resources, waste products, employee count, and safety performance Chief Sustainability Officer

• Appointed a chief sustainability officer in 2018 to focus on ESG

59

Appendix

$14.0 $13.9 $13.7 $14.0 $0.0 $4.0 $8.0 $12.0 $16.0 2016A 2017A 2018A 2019F ($ billions) $6.8 $6.7 $6.8 $6.5 $0.0 $2.0 $4.0 $6.0 $8.0 2016A 2017A 2018A 2019F ($ billions) $8.3 $8.9 $10.0 $11.7 $0.0 $3.0 $6.0 $9.0 $12.0 2016A 2017A 2018A 2019F ($ billions)

NV Energy MidAmerican Energy PacifiCorp BHE Pipeline Group

$3.0 $3.0 $3.1 $3.9 $0.0 $1.0 $2.0 $3.0 $4.0 2016A 2017A 2018A 2019F ($ billions)

61

Rate Base

62

Rate Base

£2.9 £3.0 £3.2 £3.2 £0.0 £1.0 £2.0 £3.0 £4.0 2016A 2017A 2018A 2019F (£ billions) $7.0 $7.4 $7.5 $7.5 $0.0 $2.0 $4.0 $6.0 $8.0 2016A 2017A 2018A 2019F

AltaLink, L.P. Northern Powergrid Berkshire Hathaway Energy

$41.2 $42.1 $43.5 $47.3 $0.0 $10.0 $20.0 $30.0 $40.0 $50.0 2016A 2017A 2018A 2019F PAC MEC Northern Powergrid BHE Pipeline Group NVE AltaLink, L.P. ($ billions) (C$ billions)

Private Generation Penetration Rate

63

Private Generation Customers as of September 2019 Total Electric Customers as of September 2019 Private Generation Portion of Total Customers MidAmerican Energy Iowa 942 696,593 0.14% Illinois 102 85,414 0.12% South Dakota 5,134 0.00% PacifiCorp Utah 36,919 939,041 3.93% Oregon 7,289 597,889 1.22% Wyoming 332 141,464 0.23% Washington 1,305 132,406 0.99% Idaho 1,025 81,947 1.25% California 512 45,531 1.12% NV Energy Nevada 46,593 1,309,247 3.56% Total BHE Customers 95,019 4,034,666 2.36%

Berkshire Hathaway Energy – Impact of Private Generation

Retail Electric Sales – Weather Normalized

64

Year-to-Date September 30 Variance (GWh) 2019 2018 Actual Percent PacifiCorp Residential 12,057 12,012 45 0.4% Commercial 13,586 13,455 131 1.0% Industrial and Other 15,706 15,853 (147)

• 0.9%

Total 41,349 41,320 29 0.1% MidAmerican Energy Residential 4,894 4,915 (21)

• 0.4%

Commercial 2,863 2,847 16 0.6% Industrial and Other 11,767 11,376 391 3.4% Total 19,524 19,138 386 2.0% Nevada Power Residential 7,691 7,609 82 1.1% Commercial 3,711 3,652 59 1.6% Industrial and Other 4,287 4,335 (48)

• 1.1%

Distribution-Only Service 2,008 1,893 115 6.1% Total 17,697 17,489 208 1.2% Sierra Pacific Power Residential 1,864 1,816 48 2.6% Commercial 2,278 2,275 3 0.1% Industrial and Other 2,826 2,502 324 12.9% Distribution-Only Service 1,212 1,123 89 7.9% Total 8,180 7,716 464 6.0% Northern Powergrid Residential 8,976 9,020 (44)

• 0.5%

Commercial 3,026 3,098 (72)

• 2.3%

Industrial and Other 13,565 13,804 (239)

• 1.7%

Total 25,567 25,922 (355)

• 1.4%

Retail Electric Sales – Actual

65

Year-to-Date September 30 Variance (GWh) 2019 2018 Actual Percent PacifiCorp Residential 12,213 11,996 217 1.8% Commercial 13,622 13,530 92 0.7% Industrial and Other 15,693 15,889 (196)

• 1.2%

Total 41,528 41,415 113 0.3% MidAmerican Energy Residential 5,105 5,307 (202)

• 3.8%

Commercial 2,930 2,944 (14)

• 0.5%

Industrial and Other 11,767 11,376 391 3.4% Total 19,802 19,627 175 0.9% Nevada Power Residential 7,692 8,299 (607)

• 7.3%

Commercial 3,698 3,759 (61)

• 1.6%

Industrial and Other 4,283 4,438 (155)

• 3.5%

Distribution-Only Service 2,006 1,938 68 3.5% Total 17,679 18,434 (755)

• 4.1%

Sierra Pacific Power Residential 1,881 1,877 4 0.2% Commercial 2,281 2,282 (1) 0.0% Industrial and Other 2,827 2,509 318 12.7% Distribution-Only Service 1,212 1,124 88 7.8% Total 8,201 7,792 409 5.2% Northern Powergrid Residential 8,868 9,081 (213)

• 2.3%

Commercial 2,985 3,137 (152)

• 4.8%

Industrial and Other 13,564 13,805 (241)

• 1.7%

Total 25,417 26,023 (606)

• 2.3%

Berkshire Hathaway Energy Non-GAAP Financial Measures

66

9/30/2019 LTM Adjusted Net Income Reconciliation Net Income Adjusted Tax Reform Benefits Unrealized Loss

• n BYD

Net Income As Reported PacifiCorp 762 $

• $
• $

762 $ MidAmerican Funding 606

• 606

NV Energy 322

• 322

Northern Powergrid 251

• 251

BHE Pipeline Group 396

• 396

BHE Transmission 218

• 218

BHE Renewables 360

• 360

HomeServices 168

• 168

BHE and Other (88) 89 (359) (358) Net Income attributable to BHE 2,995 89 (359) 2,725 Operating Revenue 19,865

• 19,865

Total Operating Costs and Expenses 15,831

• 15,831

Operating Income 4,034

• 4,034

Interest Expense - Senior and Subsidiary (1,881)

• (1,881)

Interest Expense - Junior Subordinated Debentures (5)

• (5)

Capitalized Interest and Other, Net 360

• (503)

(143) Income Tax (Benefit) Expense (510) (89) (144) (743) Equity (Loss) Income (4)

• (4)

Net Income Attributable to Noncontrolling Interests 19

• 19

Net Income attributable to BHE 2,995 $ 89 $ (359) $ 2,725 $

Berkshire Hathaway Energy Non-GAAP Financial Measures

67

2018 Adjusted Net Income Reconciliation Net Income Adjusted Tax Reform Benefits Unrealized Loss

• n BYD

Net Income As Reported PacifiCorp 739 $

• $
• $

739 $ MidAmerican Funding 669

• 669

NV Energy 317

• 317

Northern Powergrid 239

• 239

BHE Pipeline Group 387

• 387

BHE Transmission 210

• 210

BHE Renewables 329

• 329

HomeServices 145

• 145

BHE and Other (218) 134 (383) (467) Net Income attributable to BHE 2,817 134 (383) 2,568 Operating Revenue 19,787

• 19,787

Total Operating Costs and Expenses 15,715

• 15,715

Operating Income 4,072

• 4,072

Interest Expense - Senior and Subsidiary (1,833)

• (1,833)

Interest Expense - Junior Subordinated Debentures (5)

• (5)

Capitalized Interest and Other, Net 269

• (538)

(269) Income Tax (Benefit) Expense (294) (134) (155) (583) Equity (Loss) Income 43

• 43

Net Income Attributable to Noncontrolling Interests 23

• 23

Net Income attributable to BHE 2,817 $ 134 $ (383) $ 2,568 $

Berkshire Hathaway Energy Non-GAAP Financial Measures

68

2017 Adjusted Net Income Reconciliation Net Income Adjusted Tax Reform Benefits Debt Tender Offer Premium Net Income As Reported PacifiCorp 763 $ 6 $

• $

769 $ MidAmerican Funding 601 (10) (17) 574 NV Energy 365 (19)

• 346

Northern Powergrid 251

• 251

BHE Pipeline Group 270 7

• 277

BHE Transmission 224

• 224

BHE Renewables 236 628

• 864

HomeServices 118 31

• 149

BHE and Other (211) (127) (246) (584) Net Income attributable to BHE 2,617 516 (263) 2,870 Operating Revenue 18,614

• 18,614

Total Operating Costs and Expenses 14,105 (13)

• 14,092

Operating Income 4,509 13

• 4,522

Interest Expense - Senior and Subsidiary (1,822)

• (1,822)

Interest Expense - Junior Subordinated Debentures (19)

• (19)

Capitalized Interest and Other, Net 265

• (439)

(174) Income Tax (Benefit) Expense 353 (731) (176) (554) Equity (Loss) Income 77 (228)

• (151)

Net Income Attributable to Noncontrolling Interests 40

• 40

Net Income attributable to BHE 2,617 $ 516 $ (263) $ 2,870 $

LTM FFO 9/30/2019 2018 2017 Net cash flows from operating activities 6,399 $ 6,770 $ 6,078 $ +/- changes in other operating assets and liabilities 74 (389) 165 FFO 6,473 $ 6,381 $ 6,243 $ Adjusted Interest Interest expense 1,886 $ 1,838 $ 1,841 $ Interest expense on subordinated debt (5) (5) (19) Adjusted Interest 1,881 $ 1,833 $ 1,822 $ FFO Interest Coverage(1) 4.4x 4.5x 4.4x Adjusted Debt Debt(2) 41,028 $ 39,290 $ 39,681 $ Subordinated debt (100) (100) (100) Adjusted Debt 40,928 $ 39,190 $ 39,581 $ FFO to Adjusted Debt 15.8% 16.3% 15.8% Capitalization Total BHE shareholders’ equity 31,608 $ 29,593 $ 28,176 $ Adjusted debt 40,928 39,190 39,581 Subordinated debt 100 100 100 Noncontrolling interests 132 130 132 Capitalization 72,768 $ 69,013 $ 67,989 $ Adjusted Debt to Total Capitalization(3) 56.2% 56.8% 58.2%

Non-GAAP Financial Measures Berkshire Hathaway Energy

69

($ millions)

(1) FFO Interest Coverage equals the sum of FFO and Adjusted Interest divided by Adjusted Interest (2) Debt includes short-term debt, Berkshire Hathaway Energy senior debt, Berkshire Hathaway Energy subordinated debt and subsidiary debt (including current maturities). Excludes capital leases

starting in 2019

(3) Adjusted Debt to Total Capitalization equals Adjusted Debt divided by Capitalization

LTM FFO 9/30/2019 2018 2017 Net cash flows from operating activities 1,598 $ 1,811 $ 1,602 $ +/- changes in other operating assets and liabilities (128) (236) 39 FFO 1,470 $ 1,575 $ 1,641 $ Interest expense 395 $ 384 $ 381 $ FFO Interest Coverage(1) 4.7x 5.1x 5.3x Debt (2) 7,657 $ 7,066 $ 7,105 $ FFO to Debt(3) 19.2% 22.3% 23.1% Capitalization PacifiCorp shareholders’ equity 8,295 $ 7,845 $ 7,555 $ Debt 7,657 7,066 7,105 Capitalization 15,952 $ 14,911 $ 14,660 $ Debt to Total Capitalization(4) 48.0% 47.4% 48.5%

Non-GAAP Financial Measures PacifiCorp

70

(1) FFO Interest Coverage equals the sum of FFO and Interest divided by Interest (2) Debt includes short-term debt and current maturities. Excludes capital leases starting in 2019 (3) FFO to Debt equals FFO divided by Debt (4) Debt to Total Capitalization equals Debt divided by Capitalization

($ millions)

LTM FFO 9/30/2019 2018 2017 Net cash flows from operating activities 1,691 $ 1,508 $ 1,396 $ +/- changes in other operating assets and liabilities (348) (190) 19 FFO 1,343 $ 1,318 $ 1,415 $ Interest expense 264 $ 227 $ 214 $ FFO Interest Coverage(1) 6.1x 6.8x 7.6x Debt (2) 6,342 $ 5,621 $ 5,042 $ FFO to Debt(3) 21.2% 23.4% 28.1% Capitalization MidAmerican Energy shareholders’ equity 7,077 $ 6,446 $ 5,764 $ Debt 6,342 5,621 5,042 Capitalization 13,419 $ 12,067 $ 10,806 $ Debt to Total Capitalization(4) 47.3% 46.6% 46.7%

Non-GAAP Financial Measures MidAmerican Energy

71

(1) FFO Interest Coverage equals the sum of FFO and Interest divided by Interest (2) Debt includes short-term debt and current maturities. Excludes capital leases starting in 2019 (3) FFO to Debt equals FFO divided by Debt (4) Debt to Total Capitalization equals Debt divided by Capitalization

($ millions)

LTM FFO 9/30/2019 2018 2017 Net cash flows from operating activities 688 $ 619 $ 665 $ +/- changes in other operating assets and liabilities (24) 30 37 FFO 664 $ 649 $ 702 $ Interest expense 171 $ 170 $ 179 $ FFO Interest Coverage(1) 4.9x 4.8x 4.9x Debt (2) 2,350 $ 2,816 $ 3,075 $ FFO to Debt(3) 28.3% 23.0% 22.8% Capitalization Nevada Power shareholder's equity 3,049 $ 2,904 $ 2,678 $ Debt 2,350 2,816 3,075 Capitalization 5,399 $ 5,720 $ 5,753 $ Debt to Total Capitalization(4) 43.5% 49.2% 53.5%

Non-GAAP Financial Measures Nevada Power Company

72

(1) FFO Interest Coverage equals the sum of FFO and Interest divided by Interest (2) Debt includes short-term debt and current maturities. Excludes capital leases starting in 2019 (3) FFO to Debt equals FFO divided by Debt (4) Debt to Total Capitalization equals Debt divided by Capitalization

($ millions)

LTM FFO 9/30/2019 2018 2017 Net cash flows from operating activities 256 $ 275 $ 182 $ +/- changes in other operating assets and liabilities (28) (20) 39 FFO 228 $ 255 $ 221 $ Interest expense 47 $ 44 $ 43 $ FFO Interest Coverage(1) 5.9x 6.8x 6.1x Debt (2) 1,135 $ 1,158 $ 1,154 $ FFO to Debt(3) 20.1% 22.0% 19.2% Capitalization Sierra Pacific Power shareholder's equity 1,298 $ 1,264 $ 1,172 $ Debt 1,135 1,158 1,154 Capitalization 2,433 $ 2,422 $ 2,326 $ Debt to Total Capitalization(4) 46.7% 47.8% 49.6%

Non-GAAP Financial Measures Sierra Pacific Power Company

73

(1) FFO Interest Coverage equals the sum of FFO and Interest divided by Interest (2) Debt includes short-term debt and current maturities. Excludes capital leases starting in 2019 (3) FFO to Debt equals FFO divided by Debt (4) Debt to Total Capitalization equals Debt divided by Capitalization

($ millions)